Nalyse the scenario given and produce a report detailing your response to the below changes in business environment.
Assignment Task: Analyse the scenario given and produce a report detailing your response to the below changes in business environment.
In the late Autumn of 2010 four friends rented a 1200 sq/ft premises on Seaford Road in Salford and established a full service pizza restaurant and delivery service. The location seems to have great potential as it is between the University of Salford and the Castle Irwell student village, and in front of the IQ/Student Quarter accommodation. StudentPizza Ltd. was established in December 2010 driven by a vision of creating a popular place with students offering diverse products ranging from pizza to tea, coffee and home-style bakery. So as not to be known for food only, a ten seat computer space has been arranged to provide access to free Internet and gaming. The opening hours are from 3pm to 11pm on weekdays only.
While employing themselves and working long hours, the proprietors have realised from the outset that sales are consistently lower than anticipated. After five months StudentPizza Ltd. is in urgent need for funds to sustain its operations in order to gain wider recognition within the student community and beyond. All their attempts to widen the choice of pizzas to include Halal and vegetarian pizzas, personalised cakes, and a large variety of hot drinks havenat led to any noticeable improvement in cash flow. StudentPizza Ltd. seems to be quite popular with students as there are always plenty of students and a handful of local residents at the premises at any stated time.
A review of the immediate vicinity indicates that there is a range of eating establishments in the area, such as Alanas Fried Chicken, SPAR and Subway, providing a wide range of food and related services, but there is not another pizza shop around. In addition, due to the success of the Innovation Forum, a public sector funded venture helping businesses in Salford to flourish and grow located on the next corner, there is an influx of new, mainly business, customers. This has influenced the proprietors to be quite positive about the future. Furthermore, the surrounding area is undergoing a demographic change from a socially and economically deprived area to a relatively prosperous one because of good transportation links to Manchester city centre and Salford Quays, and the availability of recreational space represented by Peel Park and Albert Park.
However, there have been some recent developments in the companyas business environment.
a? In your attempt to analyse the structure of the existing sales you have realised that pizza sales contributes only 30% to the overall sales despite a recent survey by skiddle.com indicating that young adults tend to spend more than previous years on pizza in particular. You need to revise your promotional strategy and outline the anticipated effectiveness of the promotional channels to be used.
a? You have noticed that a new pizza takeaway has just announced itself via promotional leaflets with the offer a?buy 1 get 1 free pizzaa. It is situated at Gerald Road, next to the Post Office, that is 400ft away from the StudentPizza location. You need to assess the new takeawayas competitiveness and outline your actions, if any.
a? Your supplier of pizza dough, cheese and cakes (uk) has increased its delivery rates by 5% and cheese prices by 10%, with two weeksa notice. You need to revise your procurement strategy to offset any negative effect of this change to your operations and costs structure.
a? According to your customersa feedback, extending the opening hours from 3pm to 11pm on weekdays only to include weekend would contribute to the popularity of StudentPizza amongst students and potentially local residents. You need to assess this possibility and outline your actions in relation to the companyas staffing needs.
a? While conducting a PESTEL analysis, you have realised that UK GDP stopped growing in 2011 and actually shrank by a shocking 0.5% in the second quarter of 2011 as Britains recovery from recession faltered. Meanwhile, the Bank of England base interest rate has been stable at 0.5% for the last year but could reach 1% by December 2011.
In the analysis use any relevant model or theoretical framework from Marketing, Operations, Human Resources, Finance, Strategic Management or any other subject.
The written report should not contain any appendices and should be supplemented by a reference list.
Indicative Word Count: 1,500 A±10% words, plus a list of academic and business references.